FATF status

Serbia is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 21 June 2019

The FATF welcomes Serbia’s significant progress in improving its AML/CFT regime and notes that Serbia has strengthened the effectiveness of its AML/CFT regime and addressed related technical deficiencies to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in February 2018. Serbia is therefore no longer subject to the FATF’s monitoring process under its ongoing global AML/CFT compliance process. Serbia will continue to work with MONEYVAL to improve further its AML/CFT regime.

Compliance with FATF Recommendations

The last follow up to the Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Serbia was undertaken in 2024. According to that Evaluation, Serbia was deemed Compliant for 5 and Largely Compliant for 35 of the FATF 40 Recommendations. It was remains Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Corruption remains a significant issue in Serbia, as evidenced by its drop to 104th place on Transparency International's Corruption Perception Index in 2023. The European Commission has highlighted the need for Serbia to enhance its anti-corruption efforts, particularly in light of slow prosecutions that often target lower-level officials. Despite legislative improvements and the establishment of specialized anti-corruption units, enforcement remains weak, with many high-ranking officials reportedly evading accountability for failing to disclose assets.

Serbia's economy has shown modest improvement due to macroeconomic reforms, financial stability, and fiscal discipline, with a strong emphasis on attracting foreign investment. The country benefits from a strategic location, a well-educated labor force, and competitive labor costs, although challenges such as bureaucratic delays and corruption persist. Inflation peaked at 16.2% in March 2023 but has since decreased, and the government is focused on economic growth and job creation through significant reforms across various sectors.

Serbia's investment climate has seen modest improvements due to macroeconomic reforms and financial stability, with the government prioritizing foreign investment. The country offers a competitive labor force, generous investment incentives, and free-trade arrangements, making it attractive for U.S. investors. However, challenges such as bureaucratic delays, corruption, and political influence on economic decisions remain significant concerns.